Information on four investment proposals is given below:ABInvestment requiredPresent value of cash inflows$ (360,000)506,000$ (150,000)210,300Investment Proposalс$ (130,000)197,300Net present value$ 146,000$ 60,300$ 67,300Life of the project5 years7 years6 yearsRequired:D$ (1,200,000)1,601,100$ 401,1006 years1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.)2. Rank the proposals in terms of preference.Investment ProfitabilityProposal IndexABCDRankPreference

Step 1: The calculation of the profitability index ABCDE1ProjectsInvestmentPV of cash…

Answered: Information on four investment…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...

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nformation on four investment proposals is given below: Investment Proposal A B C D Investment required $ (94,000 ) $ (104,000 ) $ (74,000 ) $ (126,000 ) Present value of cash inflows 141,000 153,920 100,640 194,040 Net present value $ 47,000 $ 49,920 $ 26,640 $ 68,040 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal Project Profitability Index Rank Preference A ____________ Second B ____________ Third C ____________ Fourth D ____________ First
Information on four investment proposals is given below: Investment Proposal A В Investment required Present value of cash inflows $ (360,000) $(50,000) $(140,000) $ (840,000) 214, 300 $ 146,900 $ 17,600 $ 74,300 $ 281,400 7 years 506,900 67,600 1,121,400 Net present value Life of the project 5 years 6 years б уears Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference.
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nformation on four investment proposals is given below: Investment Proposal A B C D Investment required $ (900,000) $ (170,000) $ (90,000) $ (1,430,000) Present value of cash inflows 1,263,600 233,400 136,500 1,908,300 Net present value $ 363,600 $ 63,400 $ 46,500 $ 478,300 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference.
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Information on four investment proposals is provided below: Investment Proposal A B C D Investment required $ (45,000 ) $ (50,000 ) $ (35,000 ) $ (60,000 ) Present value of cash inflows 65,000 45,000 53,000 80,000 Net present value $ 20,000 $ (5,000 ) $ 18,000 $ 20,000 Life of the project 5 years 7 years 6 years 8 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. multiple choice D C B A B C A D C A D B A B C D
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Findell Corporation is considering two projects, A and B, and it has gathered the following estimates for the projects Project A Project B Useful life 5 years 5 years Present value of cash inflows $84,440 $53,300 Present value of cash outflows $79,000 $46,000 What is the present value index for Project A? Multiple Choice 1.069 0.862 1.097 0.886
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Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project 4 Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal A BUD C Project Profitability Index Investment Proposal A D $(106,000) $(116,000) $(86,000) $(144,000) 142,040 178,640 118,680 213,120 $36,048 $ 62,640 $ 32,680 $ 69,120 5 years 7 years years 6 years Rank Preference:

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